Mint Quick Edit | China’s $1.2 trillion trade surplus makes it clear Beijing isn’t slowing its export machine down

This, despite US President Donald Trump’s tariff offensive. While Beijing’s tit-for-tat response got him to back off somewhat, US trade barriers still stand higher than they were earlier. This has led to a fall in Chinese exports to the US.

But Beijing has been able to make up for them through increased exports to other markets, particularly in Southeast Asia, Africa and Latin America. For China, this is another feather in the cap as it spars with the United States on trade.

But the rest of the world has reason to be concerned. The flooding of Chinese goods into world markets risks putting local factories everywhere out of work as they are outcompeted by cheap Chinese goods produced on the back of state subsidies.

Demand weakness in China amid a property slump has meant that Beijing will continue to target overseas markets to keep its assembly lines moving and people employed. Europe, for instance, has been weighing options to protect itself from cheap Chinese imports. Others including India will have to be watchful too. While our domestic capacity has grown, imports from China have been rising as well. So long as these are for inputs, though, it should aid our production capabilities.